A greater level of collaboration between dairy co-ops is expected by Tirlán’s CEO Seán Molloy, as he said that processors will have to consider how to best utilise their assets in the post-expansion era.
A greater level of collaboration between dairy co-ops is expected by Tirlán’s CEO Seán Molloy, as he said that processors will have to consider how to best utilise their assets in the post-expansion era.
Molloy maintains that these inter-processor relationships could take many “shapes and forms” and he singled out an “affiliation” or an “alliance” with Tipperary Co-op as something that Tirlán is interested in.
“I think if I look to the next period in the industry, there will be a need to look at how we utilise our assets,” he commented when asked on the potential of co-ops facing stranded assets.
“The last decade has been about adding capacity, so that we could actually process the volume that came forward for us. It is now about adding value to that milk.”
The Tirlán chief insists that his own co-op’s joint cheese venture with Royal A-Ware in Belview, Co Kilkenny, remains a sensible investment decision, which will not result in stranded assets as milk supplies come under pressure.
“The motivation for that investment is as solid today as it was when we made that decision a number of years ago, although it has been delayed throughout planning in the intervening period,” Molloy said, adding that the plant will allow Tirlán to diversify its product offering and access more markets outside the UK.
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